Ethereum is currently experiencing a price slump, dropping over 55% from its December peak of $4,000 to below $1,800. This decline has positioned it among the weakest performers in the broader cryptocurrency market. However, Ethereum transaction fees have hit their lowest point in nearly four years, sparking debate about whether this signals lower network activity or an opportunity for a price recovery. Analysis of recent data reveals that daily active addresses on Ethereum have significantly decreased to around 461,000 in mid-March, compared to over 717,000 earlier this year. This reduction in network activity is attributed to the growing popularity of layer-2 solutions like Arbitrum, Base, and Optimism which offer faster speeds and lower fees, thus reducing overall demand for Ethereum’s main network. Whether this will ultimately affect Ethereum’s long-term market position remains uncertain. Meanwhile, the price of ETH has dropped below $1,850, struggling to maintain its position above that level. The RSI (Relative Strength Index) sits at 37, indicating a waning bearish momentum. The Stochastic Oscillator (Stoch), on the other hand, has entered overbought territory, suggesting a potential pullback. Despite this recent downturn, Ethereum is currently trading at $1,852, marking a 2.81% gain in the last 24 hours. This suggests ETH may be seeking a bounce back.